Tag: failure to declare

While most of our currency seizure clients are have their money taken from customs at an airport, we ocasionally represent people who have had their money seized at a border crossing, such as the Ambassador Bridge or the Detroit-Windsor Tunnel. In this story from CBP, Customs seized over $300,000 from a middle aged Mexican couple who were returning to Mexico. In the vehicle, inside a microwave, they found the stash. This is a class case of bulk cash smuggling, and is no doubt the reason for the seizure. The story does not specifically mention if they were arrested or charged with a crime, but the government has 5 years to do so.

CBP officers conducted an intensive secondary examination of the vehicle and discovered packages hidden in a microwave oven in the vehicle that contained $309,220 in unreported currency.

The interception occurred on Sunday, Sept. 27 while CBP officers and Border Patrol agents conducting outbound (southbound) inspections at the Lincoln-Juarez Bridge referred a 2013 Chevy Aveo driven by a 42-year-old male Mexican citizen with a 51-year-old female Mexican citizen passenger for a secondary inspection. CBP officers conducted an intensive secondary examination of the vehicle and discovered packages hidden in a microwave oven in the vehicle that contained $309,220 in unreported currency.

CBP officers seized the currency and the Chevy Aveo. CBP officers turned over the driver and passenger to Homeland Security Investigations (HSI) special agents for further investigation.

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S., however, if the quantity is more than $10,000, they will need to report it to CBP. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, travelers’ checks in any form, money orders, and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.

CBP seized almost $30,000 in cash from a traveler at Baltimore Washington Thurgood Marshall Airport last week when he was leaving the United States to the United Kingdom. Many people are not aware the the currency reporting requirement for more than $10,000 applies to when you enter or LEAVE the country. He verbally reported $8,000, wrote down $5,000, then said the money belonged to others but nothing more than $8,000 in total was being transported.

What? If true, no wonder the officers became suspicious. When a story changes 3 times in less than a minute, there is good cause to believe someone is lying. If not true, well… that wouldn’t be the first I saw CBP relate their own version of events that differed vastly from what clients have described to me.

The salient portion of the story is quoted below (full story is here):

CBP officers found a total of $27,773 on his person and in his luggage.

The man, who was boarding a flight to the United Kingdom, was selected for questioning by CBP officers who were conducting an outbound international flight enforcement operation. The man initially reported possessing $8,000 but completed a financial reporting form stating $5,000. After signing the form he stated he was also carrying currency for others, but that all the currency totaled less than $8,000. CBP officers found a total of $27,773 on his person and in his luggage. CBP officers seized the $27,773 and advised him how to petition for the return of the currency.

This past Sunday, U.S. Customs & Border Protection officers at the Philadelphia airport seized over $50,000 in unreported currency, which was also “concealed within clothing” from a Nigerian traveler. The alleged fact that the money was “concealed” within clothing may also make the currency subject to seizure for bulk cash smuggling in addition to the failure to report it. The story is partially quoted below (full version here):

U.S. Customs and Border Protection (CBP) officers seized $51,851 in unreported currency, much of it concealed within clothing, from a Nigerian woman at Philadelphia International Airport Sunday.

The woman arrived on a flight from the United Kingdom and reported to a CBP officer that she possessed $9,800. During a secondary baggage inspection, CBP officers discovered U.S. dollars, British pounds and Nigerian nairas that equaled the equivalent of $51,851 in U.S. dollars. CBP officers seized the currency and released the woman to continue her visit to the U.S.

CBP officers provide travelers with multiple opportunities to truthfully report all of their currency. Travelers who refuse to comply with federal currency reporting requirements risk having their currency seized, and potentially face criminal charges.

“There are severe consequences for violating U.S. laws,” said Susan Stranieri, CBP Port Director for the Area Port of Philadelphia. “We hope that this seizure is a lesson for all travelers that the easiest way to hold on to their currency is to honestly report it all to a Customs and Border Protection officer.”

Typically, counterfeit importations are just subject to seizure. In other words, the ‘penalty’ is loss of the goods through government seizure and forfeiture. However, Customs can impose monetary penalties under 19 USC 1526(f) on “any person who directs, assists … aids and abets [in] the importation of merchandise for sale or public distribution” once the property is seized.

Customs may presume that the large quantities means that is must have been intended for sale or public distribution. Thus, this person may have exposed himself to a monetary penalty equal to the MSRP of the seized goods as if they were real. It could be that it was meant for public sale or distribution, or it could just be that all these articles were intended for personal use and the buyer just could not stop himself from getting a good deal. Here’s the story:

The seized items included shirts, hats, shoes, purses and jewelry destined for Houston.

CBP officers conducted an inspection of a passenger arriving from El Salvador with checked bags. During the inspection, they discovered 161 brand-named articles that appeared to be counterfeit. The items did not appear to be of the quality consistent with legitimate goods as the items included unusual labeling and the markings on the clothing were not manufactured by the trademark holders.

Counterfeit Chanel Jewelry

“Packing hundreds of phony articles in suitcases doesn’t release passengers from their obligation to adhere to U.S. import laws and requirements,” said Houston CBP Port Director Charles Perez. “This seizure protects the trademark holder, their businesses and their employees and denies criminal organizations from reaping profits from the sale of counterfeit and illegitimate consumer goods.”

Counterfeit Chanel jewelry was among the seized items. Watches and jewelry topped the list of seized items sorted by value in fiscal year 2014.

CBP officers obtained digital images of the merchandise and forwarded them to the trademark owner to determine their authenticity. After verifying that the merchandise was counterfeit, CBP seized every item for infringement of intellectual property rights.

You might be facing penalties from customs for importing counterfeit merchandise. We can help. Typically, we recommended preparing and filing a petition, with the assistance of legal counsel, which argues persuasively for the substantial mitigation, or when the facts and law warrant it, cancellation of the penalty in full.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely (some history of our success is HERE).If you have had merchandise seized by customs because they allege it is counterfeit and contains trademark violations and/or have a received a notice of penalty for importing alleged counterfeits or for making an importation contrary to law, call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist petitions for customs penalties and seizures around the country, including Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. Please read these other articles:

Recently, customs in Chicago made a large seizure of jewelry from an arriving passenger for a failure to declare jewelry that was purchased abroad. The full story, which I quote below, is a lesson in the penalties for violations of 19 USC 1497, which is the law that allows seizures and penalties for a passenger’s failure to declare jewelry and other imported merchandise.

This failure to declare will prove to be a costly mistake. There are three things the importer must do to get out of this mess:

Pay the original duties ($30,043.75)

Pay any penalty levied (maximum $691,553)

Get the jewelry back (petition for remission after the notice of seizure)

The penalty will, no doubt, be issued for the full amount allowed by law which is the value of the seized property. The importer will have 60 days to either pay the full penalty or request a penalty reduction based on customs mitigation guidelines for failure to declare. Those guidelines basically state that for commercial violations of this type he should end up paying anywhere from 3 to 8 times the duty that was owed. That means somewhere between $90,000 and $240,000.

If ever I saw a person in dire need of a customs lawyer, this is it. If you’re out there and reading this give me a call at (734) 855-4999.

CHICAGO —U.S. Customs and Border Protection (CBP) officers at Chicago O’Hare International Airport seized a cache of jewelry worth almost $700,000 on Thursday. A 65-year-old U.S. citizen was selected for examination by CBP officers as he arrived from Paris via a flight London.

The passenger claimed nothing on his Automated Passport Control (APC) declaration, his written declaration and confirmed to CBP officers that he had not made any purchases or acquisitions on his trip. Upon examination of his baggage, CBP officers noticed receipts for various boxes containing what appeared to be high end jewelry, invoices and receipts. Some lose jewelry was discovered concealed in pockets of articles of clothing within his luggage. A total of 29 high value jewelry pieces were identified.

Upon discovery of the jewelry, the passenger provided CBP officers with the values of each item and stated that he works as jewelry distributor in the United States. Computer checks indicated that the passenger has imported jewelry in the past on several occasions.

The total estimated domestic value of all 29 items is $691,553. The jewelry was seized under 19 USC 1497, failure to declare. The passenger faces a maximum penalty equal to the domestic value of the undeclared merchandise and forfeiture of the jewelry. Had the passenger made a proper declaration, he would have paid $30,043.75 in duty.

As mentioned above, the importer can respond to customs’ notice of seizure and the subsequent notice of penalty with the Fines, Penalties, and Forfeitures office by filing a petition for mitigation and ask customs to return the property and reduce the penalty based on the presence of certain mitigating factors that customs particularly looks for. Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely. If the person fails to pay the penalty, the government may bring a lawsuit against them in federal district court to recover the penalty in the form of a judgment, after which point the government can lien property, garnish bank accounts, and seize property.

If you had a failure to declare jewelry to Customs or had other property seized by customs call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. Once your merchandise is seized, Customs may issue a penalty for the violation of law itself. If you have received a notice of penalty from U.S. Customs call our office immediately to discuss the possibility of filing a petition to reduce the penalty amount.

We are able to assist petitions and in seizures by customs nationwide.

Customs money seizure news releases from U.S. Customs & Border Protection have been sparse since customs renovated with their website. But, after nearly two months, we have a new story about a recent customs currency case at the Mexican border. This story is a about a 60 year old Mexican national from Louisiana who was transporting $165,000 in currency on his body.

LAREDO, Texas – U.S. Customs and Border Protection officers and agents at the Laredo Port of Entry seized more than $150,000 in unreported currency as the result of a single enforcement action that resulted in the arrest of the man who had the currency in his possession.

“Stopping the export of unreported currency is an important role in the overall scheme of hindering the flow of illicit proceeds at U.S. borders,” said Jose R. Uribe, Acting CBP Port Director, Laredo. “Laredo CBP officers and agents remain dedicated to the mission of applying export rules and regulations and hindering the cycle of these illegal outbound exportations.”

The interception of the currency occurred on Friday, April 11, while CBP officers and Border Patrol agents conducting outbound (southbound) inspections at the Lincoln-Juarez International Bridge came across a 2011 Honda Civic driven by a 60-year-old Mexican citizen from St. Amant, La. A CBP officer referred the male driver and vehicle for a secondary examination that resulted in the discovery of eight bundles containing approximately $165,000 in unreported currency on his person.

CBP officers seized the unreported currency, and the vehicle. The driver was arrested by CBP officers and turned over to Homeland Security Investigations (HSI) special agents for further investigation.

The reason your currency was seized by customs may be different. The vast majority of my client’s have had their money taken by customs at the airport or at the land borders because of miscommunication, ignorance of the reporting requirement, confusion, fatigue from travel, and other times because of unfair, if not necessarily illegal, enforcement tactics used by customs. If you have had money seized by customscall our office at (734) 855-4999to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

On February 21, 2014, CBP Officers selected [a traveler] for a random baggage examination [who] was returning from Lima, Peru and presented one checked suitcase for inspection. During the examination of his checked bag, the officer removed a cardboard diary box. The inside cover was sliced open revealing what appeared to be counterfeit U. S. $100 bills.

In total, $121,300 in counterfeit U. S. currency was concealed in one diary box, two wallets, one fabric box, and two cloth shoe racks. Mr. Rodriguez Ezeta was placed under arrest, and the counterfeit $100 bills were seized. The counterfeit currency and all evidence have been turned over to the Secret Service for further investigation, and [the individual will be] prosecuted by the U. S. Attorney’s Office Eastern District.

Based on these facts, it seems fairly clear that the person transporting the counterfeit currency knew it was counterfeit; I say that because of the concealment of the counterfeit currency in several places throughout his luggage. If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Detroit, Chicago, Cleveland, New York, and many other places, and not just locally.

As some of my currency seizure clients have come to find out, failing to properly report currency over $10,000 being transported out of the United States can result in removal from trusted traveler programs. This news release from my local port of Detroit by customs confirms it:

Detroit – U.S. Customs and Border Protection (CBP) at Detroit Metro Airport announces that three travelers enrolled in the Global Entry program have been removed due to zero tolerance violations of program rules.

Global Entry is a CBP program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States. The program benefits CBP and participating foreign governments by allowing them to focus efforts on unknown and potentially higher risk air travelers, thereby facilitating the movement of trusted travelers in a more efficient and effective manner.

“Global Entry provides a level of trust not afforded to regular air travelers,” said Devin Chamberlain, CBP Port Director. “Violations of any kind will result in removal from the program.”

The violators, all returning U.S. citizens failed to declare personal use steroids and prescription drugs and failed to report the transport of currency over $10,000. Two events occurred February 26 and the last March 1, 2014.

If you have had money seized by customs call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Seattle – U.S. Customs and Border Protection (CBP), announces that more than 26.4 million travelers were screened for entry into the United States during fiscal year (FY) 2013 (October 1, 2012 through September 30, 2013) by the 1,364 officers and 122 agriculture specialists assigned to the Seattle Field Office (SFO). Among those travelers, CBP discovered $2.8 million in unreported currency, interdicted more than 767 pounds of illegal drugs, made 1,147 arrests, and seized more than 113,000 prohibited plant and animal products.

But, the news release deals not only with customs money seizures, either, but also with customs seized merchandise imported for violation of intellectual property rights, too. We have previously written articles on trademark infringement gray market goods and trademark infringement, which can help you understand the process more.

Protecting consumers from hazardous products is another way CBP stands guard over the flow of commerce. CBP officers partnered with Consumer Product Safety Commission investigators in Seattle to seize various shipments of foreign-made children’s products containing excessive levels of lead; the unsafe imports included wearing apparel and necklaces, reindeer ornaments activity kits, magic coin tricks, and dart ball game sets. Another hazardous product targeted are toys intended for use by children under 3 years of age; two shipments totaling 4,000 cartons of plastic bath toys were seized as they posed a potential choking or ingestion hazard to America’s children.

If you have had money or merchandise seized by customs call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. Once your merchandise is seized, Customs may issue a penalty for the violation of law itself. If you have received a notice of penalty from U.S. Customs call our office immediately to discuss the possibility of filing a petition to reduce the penalty amount.

We are able to assist petitions and in seizures by customs nationwide.

Though not exactly the type of customs money seizure that my client’s experience (which usually at a land border crossing or at an airport), nevertheless Customs & Border protection recently issued a news release about some check-point currency seizures that the border patrol wing of U.S. Customs and Border Patrol executed.

San Clemente, Calif. — In two separate events, U.S. Border Patrol agents arrested two foreign nationals with large quantities of concealed bulk cash.

The first event occurred Friday at 4:30 p.m., when an Uzbekistan national, who is a permanent U.S. resident, arrived at the San Clemente checkpoint driving a commercial truck. The 27-year-old man was hauling five used cars on a trailer. The man was referred to secondary, where a K-9 performed a cursory inspection resulting in a positive alert. California Army National Guard members, operating an x-ray system, detected anomalies in two Acura MDXs. Agents searched those vehicles and discovered false compartments in their rear bumpers. The compartments were filled with 49 bundles of cash. The bundles contained an approximate total of $1,476,245 in U.S. currency. The cash and two Acuras were seized by the U.S. Border Patrol.

The second event occurred on Sunday afternoon around 2 p.m., as agents were patrolling I-5. Agents observed a suspicious vehicle travelling southbound and initiated a vehicle stop. The 39-year-old Mexican national driver was holding a valid visa. Agents requested and received permission to search the man’s vehicle. Upon inspection, agents discovered $49,900 inside a black bag and inside the man’s jacket. An additional $10,000 was in the man’s pockets. When questioned, the man stated that the $10K was his, but he did not have a receipt of declaration for bringing the money into the U.S. He claimed that the other $49,900 did not belong to him and that he did not want to be associated with it. The driver is being held in Department of Homeland Security custody with removal proceedings pending. The vehicle and cash were seized by the U.S. Border Patrol.

If you have had money seized by customs call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Great Lakes Customs Law

The customs law firm represents importers, travelers, and brokers in administrative proceedings before US Customs & Border Protection (USCBP) and at the Court of International Trade and Federal district court.